Market Intelligence

OFFICE VACANCY & ABSORPTION

Source: Cushman & Wakefield

TOTAL # OF BLDGS

% VACANT

% VACANT W/SUBLEASE

Q1 2018 ABSORPTION

Q2 2018 ABSORPTION

1ST HALF 18 ABSORPTION

SUBMARKET

NRA VACANT SPACE

Mpls CBD Northeast Northwest

111

27,040,097 8,218,576 2,331,471 6,119,640 14,635,436

5,232,3471 1,077,913 420,905 978,518 2,249,270 1,307,246 1,012,515 12,278,708

19.4% 13.1% 18.1% 16.0% 15.4% 19.8% 11.0% 16.6%

20.0% 15.0% 19.6% 16.6% 16.3% 21.6% 11.7% 17.5%

(126,657)

225,757 49,164 (18,544)

99,100 59,471 (11,692) (68,292) (111,994) 104,001 183,204 112,610

134

10,307 6,852

37 89

South/Airport Southwest St. Paul CBD

(70,714) (6,139) (41,741) 14,720 (213,372)

2,422

143

118,749

38 97

6,615,071 9,166,314

(70,253)

West

89,281

649

74,126,605

396,576

Total Market

OFFICE ABSORPTION, CONSTRUCTION & VACANCY

Source: Cushman & Wakefield

• ABSORPTION • CONSTRUCTION

• VACANCY

20%

5M

19.9

19.6

19.2

18.0

17.4

16%

4M

16.6

16.7

16.6

16.0 15.6

15.9

12%

3M

CO-WORKING still flaming hot, now 1.0% of Twin Cities office market

8%

2M

0.98

0.97

4%

1M

0.63

0.62

0.52

0.48

0.30

0.33

0.27

0.17

0.15

0.07

0.02

0.18

0%

0M

SQUARE FEET

0.00

0.00

0.00

0.00

0.00

0.00

(0.15)

(4%)

(1M)

(8%)

(2M)

(1.83)

(10%)

(3M) 2008 2009 2010 2011

2012 2013 2014 2015 2016 2017 1H 18

ABOUT THE AUTHOR

THE COMPASS REPORT Copyright © 2018 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. It is our intent to provide the best possible information while leaving the reader the responsibility of further verification before using this report for business and/or financial decisions. The report was created by experts using Twin Cities commercial property data from the first six months of 2018. The Compass report includes information for multi-tenant office, industrial and retail projects greater than 20,000 SF and multifamily for-rent properties. Not included are owner occupied, government or single-tenant buildings. Not all information and insights we’ve collected can be published in any given issue.

ABOUT CUSHMAN & WAKEFIELD Cushman & Wakefield is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter. ABOUT THE MINNEAPOLIS-ST. PAUL OFFICE

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